The U.S. Department of the Treasury said North Carolina has secured up to $201.9 million through the State Small Business Credit Initiative (SSBCI) to operate three different programs.
The effort would include a loan participation program in which $160 million has been earmarked. The American Rescue Plan reauthorized and expanded SSBCI, an endeavor initially established 12 years ago and was successful in increasing small business capital access.
“This historic investment in entrepreneurship, small business growth, and innovation funded by the American Rescue Plan will help reduce barriers to capital access for traditionally underserved communities across the state,” Deputy Secretary of the Treasury Wally Adeyemo said. “I was glad to have an opportunity to hear from North Carolina small business owners and financial institutions during my visit today and look forward to seeing the impact these funds have in promoting equitable economic growth in North Carolina.”
The program aids lenders with the process of engaging small business lending while providing support to underserved businesses.
The state has partnered with the North Carolina Rural Center to administer the program to support communities in revitalizing central business districts, bolstering neighborhoods, and supporting economic growth.
“The State Small Business Credit Initiative provides vital support for our small businesses, particularly for those who often face challenges in accessing capital,” North Carolina Commerce Secretary Machelle Baker Sanders said. “I’m excited to see how this next round of funding will help many of our state’s small, women- and minority-owned businesses across our rural communities grow and become more resilient.”